Wildhorse Co. issues $2.20 million, 10-year, 12% bonds at 96, with interest payable on December 31. The straight-line method is used to amortize bond discount. (a) Your answer is correct. Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash Discount on Bonds Payable Bonds Payable 2112000 88000 2200000